In May 2020, Richard Palmer of Global Clean Energy Holdings acquired an aging oil refinery in Bakersfield, California with the goal of processing camelina seeds to produce greener fuels like renewable diesel and sustainable jet fuel. With backing from Exxon Mobil, who also invested $150 million into GCEH, Palmer was optimistic about the future of biofuels. However, the refinery overhaul faced challenges during the pandemic, leading to cost overruns and delays. Exxon eventually pulled out of their contract with GCEH and sued the company, alleging mismanagement and breaching agreements.
Despite the legal dispute with Exxon, GCEH remains focused on their goal of making the Bakersfield refinery operational by midyear. Federal and state tax credits will help offset startup costs, with California’s low carbon fuel standards driving demand for biofuels in the region. Palmer believes that camelina has the potential to be a valuable feedstock for biofuels, with a lower carbon intensity compared to other crops. While Exxon’s involvement was seen as a valuable resource, GCEH is determined to move forward and potentially source feedstock from other suppliers.
Camelina has shown promise as a sustainable crop, with farmers like Darren Sackman and Steve McIntosh having success growing it in Montana. The efficient plant requires minimal irrigation and fertilizer, making it an attractive option for farmers looking to diversify their crops. Research suggests that camelina could potentially see a surge in cultivation in the coming years, offering a low-carbon alternative to traditional feedstocks for biofuels. With support from the U.S. Department of Agriculture, the crop could play a significant role in the shift towards climate-smart commodities.
While the legal battle with Exxon Mobil continues, GCEH is working to resolve the issues and move forward with their biofuel production plans. The company’s market cap remains modest, but they have the support of investors like Jeff Skoll’s investment company and Delek Energy. Palmer, who still owns a significant stake in GCEH, remains committed to the company’s vision and has faith in the potential of camelina as a key feedstock for biofuels. Despite challenges and setbacks, GCEH is determined to succeed in the low-carbon revolution and make a positive impact on the environment.
